Rite Aid Corporation (NYSE: RAD) shares are trading sharply higher on Thursday after the company reported better-than-expected third quarter EPS and sales results. The company also issued fiscal year 2020 EPS guidance above analyst estimates.
Rite Aid reported third-quarter earnings of 54 cents per share versus the 28 cents in the previous quarter. The company reported revenues of $5.46 billion compared to revenues of $5.45 billion in the previous quarter.
The company sees fiscal year 2020 EPS 13 cents to 55 cents versus the 5-cent estimate and sales at $21.5 billion to $21.9 billion versus the $21.64 billion estimate.
"Our team delivered a strong quarter that provides us with momentum as we prepare to roll out our long-term strategy and position Rite Aid Corporation as an innovative leader in our industry," said Rite Aid CEO Heyward Donigan. "Adjusted EBITDA grew in our retail business due to tight expense control and prescription count growth in our retail pharmacies, which benefited from solid growth in immunizations. At the same time, we saw improved pharmacy network management at EnvisionRxOptions."
Rite Aid shares traded up 21.6% at $10.12. The stock has a 52-week high of $20 and a 52-week low of $5.04.
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